These are just some of the top cryptocurrencies, including Bitcoin, Ethereum and Ripple. They are a few of the most popular today but there has been no shortage in new cryptos popping up recently. Cryptocurrencies have become one of many ways for investors to speculate on future potentials or even entirely new concepts like DAG (directed acyclic graph).
The “xrp cointelegraph” is a cryptocurrency that was created in 2014. It has the third largest market cap, and it’s one of the top ten coins by volume.
Most major cryptocurrencies, including Bitcoin (BTC), are trapped in a tight range, with bulls buying around support and bears selling near resistance. Such narrow ranges are usually followed by an increase in volatility.
Although some experts have not ruled out a fast decline to the low $40,000s, most traders predict Bitcoin to recover quickly and reach $60,000 in the near future.
In a note to investors, Goldman Sachs predicted that if Bitcoin continues to gain market share over gold as a store of value and crosses the 50% mark, it could rise to $100,000 in the next five years.
Performance of the bitcoin market on a daily basis. Coin360 is the source of this information.
According to a research released on Monday by on-chain analytics firm Glassnode, Bitcoin’s illiquid supply has climbed to more than 76 percent of the entire circulating quantity. The decline in liquid supplies, according to Glassnode analysts, means that price capitulation is unlikely in the immediate future.
Could Bitcoin surprise with a sudden drop, dragging the main altcoins down with it? Let’s look at the charts of the top ten cryptocurrencies to see what we can learn.
The 20-day exponential moving average ($48,033) is trapped between important support at $45,456 and the 20-day exponential moving average ($48,033). The relative strength index (RSI) is striving to produce a positive divergence despite the fact that both moving averages are trending down. This might signal that the selling pressure is easing.
Daily chart of BTC/USDT. TradingView is the source of this information.
The BTC/USDT pair might surge to $51,936.33 if bulls take the price over the 20-day EMA. This point is likely to operate as a stumbling block. If the price falls below it, the pair might stay range-bound for a few more days between $51,936.33 and $45,456.
If the price breaks and closes above $51,936.33, it might signal the start of an uptrend that could approach $60,000. On the other hand, if the price falls below $45,456, selling might get more intense, and the pair could drop to the $42,000 to $40,000 support zone.
The price of Ether (ETH) fell below the 20-day exponential moving average ($3,881), yet this is a good indication since bulls aren’t giving up much territory. This means that you should purchase while the market is down. The bulls will now try to drive the price above the 20-day moving average.
Daily chart of ETH/USDT. TradingView is the source of this information.
If they do so, it may signal that the correction is nearing its conclusion. The ETH/USDT pair may next ascend to the 50-day SMA ($4,086), which may function as resistance once again. If this level is broken and closed above, it will signal the start of an uptrend to $4,488 and then to $4,888, the all-time high.
In contrast to this notion, a dip below the $3,643.73 to $3,503.68 support zone is probable if the price turns down from the 20-day EMA. This is a critical support level for the bulls to hold since a break and closing below it may lead to a drop to $3,270 and then $2,800.
Binance Coin (BNB) is presently taking support at the psychological level of $500, having reversed down from the 20-day EMA ($530).
Daily chart of the BNB/USDT currency pair. TradingView is the source of this information.
The selling momentum could pick up and the BNB/USDT pair could drop to $435.30 if bears sink and hold the price below the $500 to $489.20 support zone. Bears have an edge due to the downsloping moving averages and the RSI in negative territory.
If the price bounces off the present level, however, it indicates that bulls will continue to defend this support. They will next seek to drive the price over the 20-day EMA once again. If this occurs, the pair’s value might jump to $575.
On Jan. 2, Solana (SOL) reversed its upward trend from the 20-day EMA ($178), showing that bears are selling on every tiny advance. The bears will now aim to push the stock below $167.88, which is a solid support level.
Daily chart of SOL/USDT. TradingView is the source of this information.
If they succeed, the SOL/USDT pair might fall below $148.04, a significant support level. If the rebound from this level fails to advance over $167.99, it means that demand at higher levels has dried up.
This might exacerbate the selling, pushing the pair closer to the important support level of $120. The bulls will need to lift the price above the moving averages and keep it there to indicate that selling pressure is easing. After that, the pair might climb to $204.75.
Cardano (ADA) has been trading in a range of $1.28 to the upside of the 20-day EMA ($1.36). This is a slight plus since it indicates that bulls are unwilling to give up territory to bears.
Daily chart of the ADA/USDT currency pair. TradingView is the source of this information.
The 20-day exponential moving average is flattening down, and the RSI is slightly below 46, indicating that selling pressure may be easing. The ADA/USDT pair might advance to $1.60 and then to the channel’s resistance line if bulls push the price above the moving averages.
The downtrend may be terminated if the price breaks and closes above the channel. If the price falls below $1.18, this bullish outlook will be invalidated. This might push the price down below $1, which is a critical support level.
On Jan. 3, XRP fell below the 20-day EMA ($0.86), indicating that sentiment is negative and traders are selling rescue rallies.
Daily chart of XRP/USDT. TradingView is the source of this information.
Strong purchasing can be seen near the $0.77 to $0.75 support zone on the Jan. 4 candlestick’s lengthy tail. For the next several days, the XRP/USDT pair may stabilize between $0.75 and the 20-day EMA.
Breaking and closing above the moving averages might pave the way for a $1 rise. If bulls overcome this stumbling block, the pair may begin its climb toward the hard overhead resistance at $1.41. If the price breaks and closes below $0.75, the pair might fall to $0.60, then $0.50.
On Jan. 3, Terra’s LUNA token fell below the overhead resistance of $93.81 and approached the 20-day EMA ($83). This indicates that bears are profiting from rallies.
Daily chart of the LUNA/USDT pair. TradingView is the source of this information.
If bears push the price below $81.11, selling might get more intense as short-term traders flee the market. The LUNA/USDT pair might drop as low as $76.72 before extending its losses to the 50-day SMA ($67).
If the price rebounds off $81.11, it will indicate that bulls are still buying on dips, contrary to popular belief. The bulls will next seek to break over the $93.81 overhead barrier and drive the pair to an all-time high of $103.60.
Bitcoin’s monthly RSI has dropped to its lowest level since September 2020, signaling a new ‘oversold’ condition.
For the previous three days, Polkadot (DOT) has been trading between the 20-day EMA ($28) and the overhead resistance at $31.49 The 20-day EMA is flat, and the RSI is slightly over the midway, indicating that supply and demand are in balance.
Daily DOT/USDT chart. TradingView is the source of this information.
If the price breaks and closes above the $31.49 to $32.78 resistance zone, it means the bulls have gained the upper hand. The DOT/USDT pair might then begin its ascent towards $40.
If the price falls below the 20-day EMA, the pair might linger in the area of $31.49 and $22.66 for a few more days. To signify a restart of the downtrend, the bears must dive and hold the price below $22.66.
On Jan. 4, Avalanche (AVAX) fell below the moving averages, showing that bears are defending the downtrend line vigorously. The 20-day EMA ($107) is flat, and the RSI is barely below the midway, indicating that the bulls and bears are in a position of balance.
Daily chart of AVAX/USDT. TradingView is the source of this information.
The bears will aim to plunge the AVAX/USDT pair below $98 if the price remains below the moving averages. If they succeed, the pair might fall below $75.50, which is a solid support level.
If bulls can push the price back above the moving average, the pair might surge to the downtrend line. A break and closing above this level might indicate a trend shift. The pair may rally to $128 before retesting the all-time high of $147.
For the last several days, Dogecoin (DOGE) has been trading in a narrow range between the 20-day EMA ($.0.17) and $0.16. This indicates that both the bulls and the bears are playing it cautious and not putting significant wagers.
Daily chart of DOGE/USDT. TradingView is the source of this information.
Tight ranges are usually followed by sharp movements. The negative RSI and downsloping moving averages indicate that the path of least resistance is to the bottom.
The bears will try to drive the DOGE/USDT pair below the significant support at $0.15 if the price falls below $0.16. If they succeed, the stock might fall to $0.13 and ultimately to $0.10.
The pair might climb to the tough overhead resistance at $0.19 if the price turns up from its present position and rises over the 20-day EMA. To suggest a prospective trend shift, the bulls must overcome this obstacle.
The author’s thoughts and opinions are purely his or her own and do not necessarily represent those of Cointelegraph. Every investing and trading decision has some level of risk. When making a choice, you should do your own research.
HitBTC exchange provides market statistics.
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The “crypto q4 2021” is a cryptocurrency that has been predicted to be worth $1 trillion by the end of 2021. The currency is backed by the US dollar and can be purchased with different cryptocurrencies such as BTC, ETH, BNB, SOL, ADA, XRP, LUNA, DOT, AVAX, DOGE.
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